Stock market today: Dow Jones hits new high as investors wait for Fed

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The Federal Reserve’s monetary policy body will meet this week.

Mark Wilson / Getty Images

The stock market was mixed – but showing signs of optimism – on Monday as the United States agreed to a deal with the European Union to cut tariffs. Investors await news from the Federal Reserve on Wednesday.

In the afternoon, the


Dow Jones Industrial Average

increased by 37 points, or 0.1%, while the


S&P 500

fell 0.1% and the


Nasdaq Composite

advanced 0.2%. All three indices ended Friday at record highs.

Most stocks were up. The


Equal Weight Invesco S&P 500

The exchange-traded fund (RSP), which weights every stock in the index equally and therefore shows the range of stocks up or down, rose 0.6%

Markets get a boost after the EU and the US agree to settle a steel trade dispute. The Biden administration said it would allow a quantity of steel and aluminum products to enter the United States from the EU duty-free, while maintaining tariffs on a certain quantity of these products. . The EU will lower the tariffs it had imposed on certain US products entering the EU.

In Monday’s economic data, the Institute for Supply Management’s manufacturing index stood at 60.8 for October, beating estimates but losing momentum from September.

The week, however, will be dominated by the Federal Reserve and the latest meeting of the Federal Open Market Committee (FOMC), its monetary policy body. The central bank is expected to announce that it will start slowing or reducing its monthly asset purchase schedule during the Covid-19 pandemic, which has added liquidity to markets, and markets could respond to any upgrades. substantial day.

“I expect the FOMC to officially announce the start of its QE slowdown, the real question being how much per month will it cut, and will it show a certain column? backbone and stay the course, even if the markets correct lower, ”said Jeffrey Halley, analyst at brokerage Oanda.

There will also be key announcements in the coming days from the Bank of England and the Royal Bank of Australia.

The earnings season continues at a steady pace, but with Big Tech on the sidelines, less attention will likely be drawn. This week, 162 S&P 500 companies will report, representing around 15% of the index’s market capitalization. These include


Pfizer

(ticker: PFE),


Qualcomm

(QCOM),


CVS Health

(CVS) and


Reserve assets

(BKNG). Already, nearly three-quarters of the index’s market capitalization has been released, generating an overall earnings per share of 10% compared to analysts’ expectations.

Abroad, the pan-European Stoxx 600 was up 0.7%. that of Tokyo


Nikkei 225

jumped 2.6% following the weekend’s national elections which saw the ruling party retain its majority in the lower house.

Here are five actions in motion Monday:


Novavax

(NVAX) climbed 11% after the biotech company said it filed for review of its Covid-19 vaccine candidate by Canadian health officials.


Harley davidson

(HOG) shares rose 8.5% after the company said it no longer expected the negative impact of the price hike.


ON Semiconductor

(ON) the stock rose 13% after the company reported earnings of 87 cents per share, beating estimates of 74 cents per share, on sales of $ 1.74 billion, above expectations of $ 1.71 billion.


Shake Shack

(SHAK) stock rose 6.9% after being upgraded to buy holdback from Truist.


Lockheed Martin

The stock (LMT) remained stable even after being demoted to Neutral to Buy at Bank of America.

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com


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